A clone firm is a scam operation that copies the name, registration number and address of a genuinely authorised broker so it appears regulated. The defence is to use only the contact details published on the regulator's own register — never those in an advert or email — and to cross-check the website domain, phone and email against the register. If anything differs, you may be dealing with a clone.
How a clone-firm scam works
A clone firm exploits the fact that a broker's regulatory authorisation is public. Scammers take the real name, licence number and registered address of a genuinely authorised firm and present them as their own — on a near-identical website, in cold calls, or in adverts and social-media messages. To a victim checking quickly, the firm 'appears' on the regulator's register, because the details being quoted really do belong to an authorised firm. The catch is that the scammer is not that firm; they have simply borrowed its credentials.
The scam usually steers you to deposit funds into accounts controlled by the fraudsters, often with high-pressure tactics, promises of unrealistic returns, or claims of a limited-time opportunity. Because the money never reaches the genuine regulated firm, none of the protections — client-money segregation, compensation schemes, complaint rights — apply. Regulators including the FCA, the AMF in France and the CNMV in Spain publish warnings naming known clone firms precisely because the tactic is so common.
How to spot a clone firm before you deposit
The single most effective defence is to never trust contact details given to you. Go directly to the regulator's official website yourself, search the firm on its public register, and use only the website, phone number and email published there. Then compare those against the site or person you are dealing with. Clone firms almost always differ in at least one detail — a slightly different domain (an extra word, a different country suffix), a different phone number, or an email on a free or mismatched domain.
Other warning signs travel with clones: pressure to deposit quickly, promises of guaranteed or outsized returns, a request to pay into a personal or third-party account, or an offer of a 'bonus' (which no EU or UK regulated broker may give a retail client anyway). If you are contacted out of the blue about an investment, treat it as suspect by default. Check the regulator's published clone-firm warnings, and if anything fails to match the register exactly, stop.
What to do if you suspect a clone
If the details do not match the register, do not deposit, and do not let urgency override the check — a genuine regulated firm will not lose your business because you took a day to verify it. Report the suspected clone to the relevant regulator using the reporting channel on its official site; this helps the regulator publish or update its warnings and protect others. If you have already sent money, contact your bank or card provider immediately, as some payments can be recalled if you act quickly.
Prevention is far more reliable than recovery: funds sent to a clone firm are frequently unrecoverable, because the operation is designed to move money out of reach. The habit that protects you is boring but effective — verify the exact legal entity on the regulator's own register, use only the register's contact details, and never act on the urgency a scammer manufactures. Our guide on verifying a broker's licence walks through the register check step by step.
Frequently asked questions
What is a clone firm?
A clone firm is a scam that copies the name, licence number and details of a genuinely regulated broker to appear authorised. Because it quotes a real firm's credentials, it can briefly seem to 'appear' on the register — but the scammer is not that firm, and none of the regulatory protections apply to money you send them.
How do I tell a clone firm from the real broker?
Use only the contact details published on the regulator's own register, never those from an advert or email, and cross-check the website domain, phone and email of the firm contacting you. Clones almost always differ in at least one detail. Many regulators also publish warnings naming known clone firms.
What should I do if I've paid a clone firm?
Contact your bank or card provider immediately — some payments can be recalled if you act quickly — and report the clone to the relevant regulator. Funds sent to clone firms are frequently unrecoverable, so acting fast matters. Prevention through register checks is far more reliable than recovery.
Sources & further reading
Spreadwise is an independent publisher comparing ESMA-regulated forex and CFD brokers across Europe and the UK. Our editorial desk verifies every regulatory claim against the regulator's own register and never accepts payment for a better review.